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FINANCE Perreaux quotes averages in Burgundy of $118,000 per acre for AOP vineyard land, but within Burgundy the prices of some appellations vary widely. Grand crus (such as some vineyards in Vougeot, ChambolleMusigny and Puligny-Montrachet) average more than $2 million per acre. Chablis appellation land north of Burgundy proper averages $81,000 per acre. In Champagne the average price of vineyards is about $600,000 per acre. In southern France, the average price in Languedoc-Roussillon is $6,000, while in Provence it's $24,000, and in the Châteauneuf-du-Pape appellation of the southern Rhone region, prices average $183,000. Change in French Vineyard Values 1990 2000 2010 Change 1990-2010 Bordeaux AOP $11,836 $18,292 $10,760 -9% Côtes du Rhône AOP $11,836 $18,292 $10,760 -9% Châteauneuf-du-Pape $53,800 $215,200 $204,440 280% Gigondas $24,210 $80,700 $86,080 256% Médoc $26,900 $129,120 $134,500 400% $215,200 $457,300 $699,400 225% Volnay $53,800 $430,400 $699,400 1,200% Meursault $59,180 $457,300 $807,000 1,264% Vosne Romanée $67,250 $150,640 $279,760 316% $107,600 $269,000 $538,000 400% Appellation Pomerol Champagne Dollars per acre. Converted from euros per hectare, source: Vinea Transaction Planting quotas Leggett Immobilier is another specialist in the sale of French vineyards. Leggett's Jane Berry is based in the ancient Bordeaux city of Saint-Émilion and heads up the specialist vineyard department. She tells Wines & Vines, "Happily, for the protection of the French wine industry, you can't just go planting vines wherever you feel like it." There are two different laws, one covering "re-planting rights" (valid for eight years) and one covering "new planting rights" (two years). "Each region has its set quotas," she noted. "The owners must always uproot the same area of vines when they replant so production levels remain the same. Some growers simply set aside a few hectares of arable land so that when they need to replant the vines Properties for Sale Bordeaux Right Bank estate, $8.5 million Leggett's Jane Berry mentioned a property from the Leggett Immobilier portfolio that may be of interest. The property is a Bordeaux Right Bank location with 44 acres of vines as well as a Louis XV-style house built in 1782. The vines are extremely well maintained, and another 12 acres are available for planting new vines. The appellation is AOC Côtes de Castillon. The soil type is clay-limestone and sand-clay with a subsoil of clay-iron. The average age of the vines is 40 years. The grape varieties include 55% Merlot, 27% Cabernet Franc, 13% Cabernet Sauvignon and 5% Malbec or Côtes. Production is approximately 10,000 cases per year. The price of the property is $8.5 million. Tempranillo property in Spain, $23 million Rimotgó, an affiliate of Christie's International Real Estate in Spain, lists a winery for sale in Burgos in Ribera del Duero for $23 million. This operating vineyard offers 161 acres, of which 86 acres are Tempranillo vines, and some land is currently fallow. Both the planted vineyards and the fallow fields are totally organic. The seller also manages another 25 acres of vineyards that are not located on the property of the estate. These are also for sale. This corresponds, according to the rules and regulations for the Designation of Origin for Ribera del Duero, to about 18,000 cases. The vineyard also has a bottling plant, an impressive barrel room, a wine-storage cellar and a common room for the staff. P. F. 42 W in es & V i ne s s e pt e m b e r 20 13 they can without going over their quota." She adds that a grower may buy a droit de plantation (right of planting) from a neighbor who is not using the full allocated quota. Planting rights are frequently traded or bought and sold on the open market. Berry says that in certain prime areas, such as Saint-Émilion and Cognac, new planting rights are extremely rare and there is a waiting period of many years. She adds, "The EU has recently reached agreement on new laws that should safeguard the industry until 2030. The new system will allow new vine plantings to be managed for all wine categories with a maximum increase of 1% per annum." Italy and Spain Prices in other parts of Europe are not usually as high as in France. Vignobles Investissement's Dakin quotes typical prices for appellations in Tuscany. Non-appellation vines sell for an average $11,000 per acre, Chianti for $30,000, Chianti Classico for $54,000 and Montalcino for $161,000. In Spain, Torres, a leading wine company, passed along prices with a warning that prices of vineyards can change a lot depending on different parameters: Penedès land sells for about $16,000 per acre; land in La Rioja costs $30,000 per acre, and an acre in La Mancha costs about $8,000. Back in California International Wine Associates in Healdsburg, Calif., is involved in global mergers and acquisitions. Founder Robert Nicholson quoted recent sale prices in Burgundy and elsewhere and compared them with U.S. vineyard values. "In California, we have a long way to go before we have maximized vineyard values," Nicholson said. "We are only seeing the beginning of a long upward cycle for the value of top wine estates."